New $288 million youth jail set to be built in Melbourne

The Andrews Government has announced $288 million high-security juvenile prison will be built in a bid to fix Victoria's embattled and overstretched youth justice sector after a mass breakout and a series of riots.

The 224-bed centre will be built in Werribee South on government land, with construction to start early next year, Premier Daniel Andrews said this morning.

As part of the massive shake-up of youth justice, administration will be taken off the Department of Health and Human Services and moved to the Department of Justice and Regulation in April.

Corrections Victoria, a part of the Justice Department, will permanently manage the security of all youth custodial and community-based services.

"Of course this is an issue that will be difficult and it is one where people will have legitimate concerns," he told reporters.

"(But) I'm absolutely convinced this is the right decision and I'm absolutely committed to engage in my community."

Plans for the new prison, which will hold sentenced and remanded youths, come after two reports found Parkville was unfit for purpose.

A report by former Victoria Police Commissioner Neil Comrie into riots at Parkville last November, completed in January, found the facility had "inherent safety and security issues" and destruction by detainees rendered residential units "uninhabitable".

Photos included in the report show ceilings ripped down, electrical cables exposed and windows smashed.

Victorian Ombudsman Deborah Glass said successive governments failed to make the significant investment needed to address issues in the sector.

Fortification works are being done to repair Parkville, but the centre will closed when Werribee opens, Ms Mikakos said.

Opposition Leader Matthew Guy said the new facility should have been announced months ago.

Repeated riots in Parkville and Malmsbury, and a mass break-out, have thrown the system into crisis.

After the disturbances in Parkville in November, detainees were moved to the adult, maximum security Barwon Prison sparking a Supreme Court battle over the legality of the move.